The refraction and reflection process of traveling waves has an important influence on the fault transient process. Studies up to now, while optimizing the parameters of the fault current limiter (FCL), have not considered the influence brought by the refraction and reflection process of the fault traveling wave on the selection of FCL parameters. This paper proposes a time-domain analysis method of fault transient response considering traveling wave refraction and reflection and optimizes the parameters of the FCL with parallel resistance-inductance. First, an equivalent converter fault model is established, then the suppression effect on the fault current of the FCL using different current-limiting impedance types is compared. Secondly, the expressions of the fault traveling wave in the frequency and time domains are derived, and the equivalent models of each time sequence are established according to Peterson's rule to accurately calculate the fault current. The fault current and the voltage stress at both ends of the FCL are taken as the optimization objectives, and the parameters of the FCL are optimized using a particle swarm optimization algorithm to obtain the optimal matching value of the current limiting impedance. Finally, a three-terminal DC grid model is built in PSCAD/EMTDC for simulation comparison. The simulation results verify the accuracy of the fault current calculation method as well as the optimized model considering the traveling wave refracted reflection. This work is supported by the National Natural Science Foundation of China (No. U2066208).